Correlation Between Haverty Furniture and KLX
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and KLX at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haverty Furniture and KLX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haverty Furniture Companies and KLX Inc, you can compare the effects of market volatilities on Haverty Furniture and KLX and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Haverty Furniture with a short position of KLX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and KLX.
Diversification Opportunities for Haverty Furniture and KLX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haverty and KLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and KLX Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLX Inc and Haverty Furniture is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Haverty Furniture Companies are associated (or correlated) with KLX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLX Inc has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and KLX go up and down completely randomly.
Pair Corralation between Haverty Furniture and KLX
If you would invest 2,220 in Haverty Furniture Companies on September 15, 2024 and sell it today you would earn a total of 72.00 from holding Haverty Furniture Companies or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. KLX Inc
Performance |
| Timeline |
| Haverty Furniture |
| KLX Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Haverty Furniture and KLX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and KLX
The main advantage of trading using opposite Haverty Furniture and KLX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, KLX can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KLX will offset losses from the drop in KLX's long position.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Home Depot | Haverty Furniture vs. Lowes Companies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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